For manufacturers and OEMs selling on the Government e-Marketplace (GeM), Vendor Assessment is an important step for establishing manufacturing credentials on the portal.
But not every seller has to go through it. Sellers in specified categories can apply for GeM Vendor Assessment Exemption (VAE) instead of the standard RITES assessment, with no fee and no video inspection. RITES' official Vendor Assessment manual asks sellers to first check whether they fall under an exemption category. If you do, you apply for exemption; if not, the regular Vendor Assessment route applies.
This guide covers who qualifies under the latest policy, the documents you need, how to apply, and the mistakes that get requests rejected.
What is GeM Vendor Assessment?
GeM Vendor Assessment is a check on whether you are a genuine seller who can actually supply what you list.
The purpose of Vendor Assessment on GeM comes from Rule 149 of the General Financial Rules, 2017, which requires GeM to certify the credentials of its suppliers.
The assessment is done by RITES (Rail India Technical and Economic Service), a Government of India company, in two stages:
- Desktop Assessment: your documents and details are checked online.
- Video Assessment: a RITES assessor checks your manufacturing process live on a video call. This stage is only for OEMs (Original Equipment Manufacturers).
It is mandatory mainly for OEMs selling in Q1/Q2 categories, where quality risk is higher. Your Vendor Assessment Certificate is valid for 3 years.
For the full process, read our guide on Vendor Assessment for OEM.
Vendor Assessment Exemption Meaning
Vendor Assessment Exemption means GeM accepts a status or licence you already hold, such as a PSU status, a BIS licence or a drug licence, instead of doing a fresh RITES assessment.
There is no video inspection and no fee. RITES still checks your documents, so you have to prove your eligibility.
Vendor Assessment vs Exemption vs Vendor Validation
| Point | Vendor Assessment | Vendor Assessment Exemption | Vendor Validation |
|---|---|---|---|
| Who needs it | OEMs / sellers in Q1–Q2 categories | Sellers in notified exempt categories | All sellers |
| Fees | ₹217.90 to ₹3,486.44 + GST (turnover-based) | ₹0 | ₹0 |
| Done by | RITES | RITES (document check only) | GeM, through online database checks |
| Time taken | Around 15 days after fee payment | Usually about 2 working days | During GeM registration |
| Validity | 3 years | Up to 3 years for BIS; tied to your status/licence for others | Ongoing, updated yearly |
| Video inspection | Yes (OEMs) | No | No |
Even if you are exempt, your identity, PAN, GST, turnover and company details are still validated online. That is Vendor Validation, and every seller goes through it.
GeM Vendor Assessment Exemption Criteria – Who Is Exempt in 2026?
The GeM Vendor Assessment Exemption criteria are set out in GeM's Vendor Validation Policy V3.4 (effective 3 October 2025). You qualify only if your business falls into one of these categories:
| Seller Category | Proof Needed | Key Condition |
|---|---|---|
| Central / State PSUs | PSU status proof | — |
| Registered Societies / Trusts / bodies with Government representation | Registration + proof of Govt representation | Resellers only (not available to OEMs) |
| KVIC, WDO, Coir Board, TRIFED | Organisation proof | — |
| OEMs with BIS licence (CML) for that product | BIS licence, validated on BIS database | 3 years or CML expiry, whichever is earlier; inform GeM if the licence is cancelled |
| Sellers recommended by a CPSE / Central or State Govt department | Recommendation from the buyer's Competent Authority | Only for buyer-specific categories approved by GeM |
| Vaccine manufacturers | Listed by Ministry of Health & Family Welfare | — |
| Drug / medicine manufacturers | Notarised undertaking + valid certified copy of drug licence | Licence must be valid |
| Medical device manufacturers | Valid manufacturing licence from the licensing authority | Licence must be valid |
| Automobile OEMs | Valid CMVR (Central Motor Vehicles Rules) certificate | Certificate must be valid |
| Any other category | As notified with approval of CEO-GeM | As notified |
What about ₹500 crore+ turnover? Under V3.4, sellers with ₹500 crore+ turnover in any one of the last three years are no longer fully exempt. They get a simplified Vendor Assessment instead: fewer documents, but a video assessment still applies.
Not sure which certificates apply to your products? See our GeM Seller Certifications 2026 checklist.
Who Is NOT Exempt (Common Myths)
We correct these myths almost daily:
- Udyam/MSME registration alone does NOT give exemption. GeM only uses it to verify your MSME status.
- DPIIT Startup recognition alone does NOT give exemption. It is also used only for verification.
- An ISO certificate alone does NOT give exemption.
- NSIC and UCC (DRDO/OFB/SITRA) are no longer valid grounds. OEM dashboards issued on this basis were removed after 12 April 2023.
- ₹500 crore+ turnover no longer gives full exemption. It now means a simplified assessment.
If someone tells you otherwise, ask them to show it in the current policy.
GeM Vendor Assessment Exemption Documents – Checklist
GeM publishes a "Guidelines and Documents for VAE application" file inside your account. Use it together with this Vendor Assessment Checklist:
- Exemption proof for your category: BIS licence, drug licence with notarised undertaking, medical device licence, CMVR certificate, PSU proof, or buyer recommendation letter
- Declaration of Beneficial Ownership on company letterhead (format available on GeM)
- PAN and GST details, matching your GeM profile
- Aadhaar/ID of the proprietor, partners or directors
- Company registration details (CIN, for companies)
- Authorisation letter for the person signing on behalf of the business
BizHelp tip: The most common reason for rejection is a mismatch between your GeM profile and your documents. Before you apply, make sure your GeM profile is 100% complete and matches your documents.
How to Apply for Vendor Assessment Exemption in GeM Portal – Step by Step
- Log in to gem.gov.in and go to My Account → Vendor Assessment.
- Open the "Assessment Exemption Documents" tab. Read the VAE guidelines, download the Beneficial Ownership format, and upload the required documents.
- Go to the "Assessment Exemption" tab.
- Click "Create Exemption Request". This is your Vendor Assessment Exemption Form.
- Under "Assess Me As", choose Manufacturer/OEM or Reseller.
- Select your exemption criteria from the dropdown, for example BIS licence holder or PSU.
- If you are an OEM, select your product categories and fill in details such as product description, production capacity and sales.
- Upload your exemption certificate and click Submit.
- Note down your Exemption Request ID to track your request.
For resellers: The process is shorter, with no manufacturing details. But under V3.4, your request is processed only for categories where the OEM holds a valid OEM dashboard on GeM. If your OEM isn't on GeM, the request may be rejected. Once approved, you can move on to uploading your product catalogue as a reseller.
What Happens After You Apply?
RITES checks your documents, usually within about 2 working days. You'll get an email when the status changes, and you can track progress under "Assessor Response".
If your request is rejected, read the remarks, fix the document, and apply again.
Once approved, OEMs can set up their OEM panel and authorise resellers. Our OEM Authorization team can handle that for you.
Vendor Assessment Fees on GeM vs Exemption
Exemption costs ₹0. If you don't qualify, Vendor Assessment fees on GeM are paid directly to RITES:
| Turnover | OEM Fee | Reseller Fee |
|---|---|---|
| Up to ₹20 lakh | ₹871.61 + GST | ₹217.90 + GST |
| ₹20 lakh – ₹1 crore | ₹1,743.22 + GST | ₹435.81 + GST |
| Above ₹1 crore | ₹3,486.44 + GST | ₹871.61 + GST |
Vendor Assessment validity in GeM is 3 years; apply for reassessment at least 2 months before expiry. If GeM changes its Vendor Assessment Exemption Policy and your category is no longer covered, you must complete a full assessment within 1 month.
Common Reasons for GeM Vendor Assessment Exemption Rejection
A seller may genuinely qualify but still face rejection because of documentation errors:
1. Wrong Exemption Category
A certificate cannot support a criterion it was never meant for.
2. Expired Certificate
An expired BIS or manufacturing licence makes the claim invalid.
3. Category Mismatch
A BIS licence for Product A won't support exemption for an unrelated Product B.
4. Company Name Mismatch
Differences between GeM records and documents trigger verification issues.
5. Wrong Legal Entity
A certificate issued to one company can't be used by another, even if the directors are the same.
6. Incomplete Documents
A single page, an unclear scan or a partial certificate delays verification.
7. OEM Not on GeM (Resellers)
A reseller's request can be rejected if the OEM has no valid OEM dashboard.
FAQs
Q1. Is an MSME/Udyam registered seller exempt from GeM Vendor Assessment?
No. GeM uses Udyam only to verify your MSME status. You must fall into a notified category, such as holding a BIS licence, being a PSU, or having a drug or medical device licence.
Q2. Is a ₹500 crore+ turnover company exempt from Vendor Assessment?
Not fully, under Policy V3.4. These sellers get a simplified Vendor Assessment with fewer documents, but a video assessment still applies.
Q3. How long does RITES take to approve exemption?
Usually about 2 working days after a complete request. Delays mostly happen when documents don't match your GeM profile.
Q4. What is the validity of Vendor Assessment Exemption?
For BIS licence holders, 3 years or the CML expiry, whichever is earlier. For drug, medical device and CMVR categories, keep your licence valid and updated on GeM.
Q5. Can a reseller apply for Vendor Assessment Exemption?
Yes, if a criterion applies, such as PSU or KVIC status. But the request is processed only for categories where the OEM has a valid OEM dashboard on GeM.
Q6. Is a DPIIT-recognised startup exempt from GeM Vendor Assessment?
No. GeM uses the DPIIT database only to verify startup status. Startups that manufacture products need a full Vendor Assessment unless they fall into another exempt category.
Q7. Can I still get exemption through NSIC registration or UCC?
No. GeM discontinued both. OEM dashboards issued on these grounds were removed after 12 April 2023.
Q8. What happens if my BIS licence is cancelled or expires?
Inform GeM right away; your exemption will be withdrawn. Renew the licence and update it on GeM, or apply for a full Vendor Assessment with RITES.
Conclusion
GeM Vendor Assessment Exemption costs nothing, skips the video inspection, and usually clears within a couple of working days, but only if you genuinely qualify. Stick to the categories in GeM's latest Vendor Validation Policy. Udyam, ISO, startup recognition and NSIC don't count, and ₹500 crore+ turnover now means a simplified assessment, not full exemption. If you're eligible, match your documents to your GeM profile and apply. If you're not, a full assessment starts under ₹900 + GST for OEMs.
If you'd rather not risk a rejection, BizHelp India's GeM experts will check your eligibility and file the exemption request for you. And if you don't qualify, we'll handle your full Vendor Assessment with RITES instead.
For more information, watch our step-by-step videos on the BizHelp YouTube channel.
